The Securities and Exchange Board of India (SEBI) has issued a circular, extending the trading window closure period for listed companies. SEBI circular dated July 19, 2023, highlights the phased implementation of the framework for restricting trading by Designated Persons (DPs) through freezing PAN at the security level.
The circular outlines the provisions of Clause 4 of Schedule B read with Regulation 9 of SEBI (Prohibition of Insider Trading) Regulations, 2015, which govern the trading activities of DPs. It explains the instances of trading window closure, including the period after the declaration of financial results. To improve compliance and ease of doing business.
SEBI had previously introduced a framework for restricting trading by DPs through freezing PAN at the security level. Initially applicable to benchmark indices, this framework has now been extended to all listed companies. The circular further details the phased implementation plan, with timelines provided for different categories of listed companies.
Timelines for phase-wise implementation of the framework:
| Sr No | Companies to be covered | PAN freeze start date |
| 1 | Listed companies that are part of benchmark indices i.e. NIFTY 50 and SENSEX | Already applicable as on the date |
| 2 | Top 1,000 companies in terms of BSE Market Capitalization as of June 30, 2023 (excluding companies part of benchmark indices) | October 1, 2023 |
| 3 | Next 1,000 companies in terms of BSE Market Capitalization as of June 30, 2023 | January 1, 2024 |
| 4 | Remaining companies listed on BSE, NSE & MSEI | April 1, 2024 |
| 5 | Companies getting listed on Stock Exchanges post-issuance of this circular | 1st day of the second quarter from the quarter in which the company gets listed |
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